The stock market rally isn't real - here's what's going on
The stock market rally isn't real - here's what's going on

The stock market rally isn't real - here's what's going on

Yeng Constantino

18 min
Business & Finance
Putar

Deskripsi

<p>I have a friend who was part of a famous hip-hop group called "The Geto Boys." &nbsp;Back in the day, Willie D and his partners Scarface and Bushwick Bill had a famous song called "My Minds Playing Tricks on me." &nbsp;&nbsp;I thought about this song when I saw the stock market's unbelievable behavior this morning. &nbsp;&nbsp;Upon the release of a highly anticipated inflation report, the market collapsed, with the Dow dropping over 500 points in an instant. &nbsp;At that moment, I knew that my students and I would be in for a rough day. &nbsp;&nbsp;Then, by noon, the market hadn't just clawed back all of it's losses, it had already sprung forward by another 800 points on top of that. &nbsp;That's like a basketball team being down by 25 points and winning by 40. &nbsp;&nbsp;&nbsp;While this major market swing can be interpreted in a multitude of ways, I'll start with this simple message: &nbsp;Don't believe it. &nbsp;&nbsp;&nbsp;The story regarding why the market swung in this way is about as flimsy as the one told by Jussie Smollett when he went out for a Subway sandwhich at 2 am in Chicago. &nbsp;&nbsp;Some believe that this major market rally occured because an overheated Consumer Price Index report signals that inflation could be peaking and eventually headed south. &nbsp;&nbsp;Are you serious? &nbsp;What kind of crack does one have to smoke to believe that this story has merit? &nbsp;&nbsp;&nbsp;To be clear, the argument basically says that because inflation went up higher than expected, this means that it's almost surely headed down. &nbsp;This is not true. &nbsp;Use this as an opportunity to sell or shave assets off the top. &nbsp;There's nothing to believe about any of this. &nbsp;&nbsp;With that said, I broke the issue down today on The Black Financial Channel. &nbsp;Also, you're welcome to study stock options with me and my students tonight at DrBoycePrime.com. &nbsp;&nbsp;Sincerely, Dr Boyce Watkins</p>

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FaithNorth

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